Open House Archives - Fort Myers Real Estate and Homes For Sale

SW Florida listing counts headed higher in the past week. Over listings rose by almost 400 units as single-family homes and condos shared the rise in inventory.

As listing inventory rose this past week, pending sales declined, which is a double whammy for the local real estate market. To be fair, America has been in an election hangover waiting for results.

Post Election Market

We went back and looked at local real estate inventory the last time Trump was elected. This data might deliver clues on what to expect this time.

Listing inventory in SW Florida remained constant until the Fall of 2019. Trump became president in January of 2017. It took about 2 ½ years for his economic plan to take effect. We also looked at local home prices back then. It was roughly Fall of 2019 before they started rising as well.

This tells us two things. Home inventory levels are a good measure as to where pricing will go. Secondly, new economic policies take time to take effect.

Speculation

Some speculate that Trump will be smarter this time and hit the ground running. If his policies are enacted sooner, their effect could take place sooner. Of course, things are different this time around. Our national debt is over $35 trillion and climbing, inflation roared, and interest rates tripled in less than 4 years. Will the president’s policies work with these new conditions? Will he be able to execute every financial option he’d like to because of the debt and interest rates? We’ll be watching to see if the effects work faster or slower than last time.

Slow Your Roll

These are all questions to be answered over time. Trump has proposed ending the cap on SALT deduction. This would help real estate in high tax states like CA, IL, NY, NJ. Those high tax states were responsible for sending many residents to Florida. The high taxes will remain, but the deduction might slow the flow of migration to Florida from these high tax states. This could affect demand in Florida, which would limit price increases.

SW Florida has excellent supply. With listing counts headed higher, we do not need demand to drop off radically. We believe many will still choose to migrate to Florida because of the weather and tax advantages. Allowing a higher deduction for high tax states may keep some there is all we are saying.

The Fed

We are watching interest rates moving forward. The Fed just reduced another 1/4%, but so far the bond market hasn’t liked it. Bond rates have gone up about .8% since the Fed has lowered 3/4%. In fact, many on Wall St are worried the Fed may have to raise rates in 2025 due to the economy doing better and high debt. This would essentially be egg on the Fed’s face because it would mean inflation is not under control.

The worst thing a Fed can do is lower rates before inflation is under control. We saw this back in the 80’s when the Fed was forced to start raising rates again. It threw us into a double dip recession. The Fed was wrong about transitory inflation, and they may have been wrong about lowering rates too soon. The bottom line is, rates may not come down as fast as people thought in 2025. We may need lower taxes and lower cost of oil to help the economy out, or risk recession.

The next year will be fascinating to watch. Many economic conditions will be in play and depending on what the new policies are moving forward and how quickly they take effect will shape which direction our real estate market moves.

Either way, we’ll help you keep track of what is really going on in the real estate market. You can always call Sande or Brett Ellis with Keller Williams Realty 239-310-6500 with your questions, or get a value for your home online at www.SWFLhomevalues.com

With inventory high, who you hire matters! Go with experience, and marketing! With listing counts headed higher, and we have no idea how many more may enter the market in January.

Good luck, and Happy Selling!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

10813 Dennington Rd, Fort Myers FL 33913

Bridgetown Open House — Pool Home on Lake

Open House Sunday 12-3 PM

4768 Crested Eagle Ln, Fort Myers, Fl 33966

Live Fort Myers Beach Webcam

Pre-election real estate showing activity is down 32.5% from last year. Is the decline in showings this year due to the elections, or is something else going on?

As a real estate professional, one of the top objections we are getting from buyers and sellers is they want to wait until after the election. We hear this objection every 4 years, but this year more people are saying it.

Real Estate Showing Activity Down 32.5%

We studied the first 28 days of October 2023 and compared to October 2024. Sure enough, overall showings are down 32.5%. The interesting part is both ends of the price ranges are being hurt. The luxury million dollar plus homes have been hurt the worst, down 72.22%. The $200-$300k range is next, down 56.09%. Showings are down in every price range.

If showings are down solely due to people waiting until after the election, it would stand to reason that showing activity will pick up in the weeks following. I hope they do, but something tells me there is more to the story.

Interest Rates

Interest rates have been rising, up about .75% since the Fed lowered rates. This could influence showings. Consumer confidence in the economy and the future could also have an effect. Until people know the direction of the economy, they may wish to hold off large purchasing decisions.

I believe it’s a sense of loss of control. People no longer feel like they control their own future. The government plays a bigger role, and people are uncertain which track we will take going forward. In a way, the future will become clearer to more people, and maybe they can move on from their current state.

Of course, half the country will be shocked either way. It may take a month or two for reality to set in. After that, real estate activity should go back to normal objections and motivations.

Success Going Forward

No matter who wins the election next week, one thing is clear. The Realtor you select to buy and sell with makes all the difference. Your vote next week is important. The Realtor you select is too. When selling, marketing is key. What will your Realtor do to make your home stand out? Inventory is much higher, and still rising. Pending sales have been declining. Selling in today’s market requires more marketing than ever.

Marketing Muscle

The Ellis Team has some new marketing that may help. The Ellis Team still advertises online, in print, and with national presence using Gannett, the News Press, USA Today, as well as Google, Bing, Facebook, Instagram, our Blog, Keller Wiliams, and all the other tools to create maximum exposure. Our Team continues to operate www.LeeCountyOnline.com which is SW Florida’s premier local search site. We’re adding to this lineup with some additional muscle. If you’re in the market to sell, you definitely should talk to us. 239-310-6500

Buying

The Realtor you choose to work with on the buying end matters now too. Negotiations are more complex with the new settlement guidelines, and some Realtors don’t have the experience or understanding to negotiate several issues at once. Brett, Sande, and our team can help with that as well. Before you make a real estate decision, consult with the Ellis Team at Keller Williams Realty. Who you hire matters.

Good luck, and Happy Selling! And don’t forget to vote.

Ellis Team Weekend Open Houses

Single family home seller price reductions average 3.21% since June. This past week they averaged 2.88% while the week prior averaged 3.65%

We also track how many homeowners are reducing their price each week. Last week we had 483 reductions compared to 604 the week before. The week of April 16^th was the highest with 911 single family homes in Lee County reducing their price.

Data

What does all this data mean? With approximately 6 or months supply of homes on the market, depending on price range, more homes are coming to the market than selling. Homeowners are competing against other sellers for the best buyers. If a seller brings their property to market at a price the market accepts, it should sell. If the market rejects the price, sellers are choosing to adjust to the market because they wish to sell rather than keep their home.

Of course, some sellers would rather keep their home if they don’t get a price they want. That’s a nice position to be in. However, sometimes keeping a home and watching the prices go down can be disheartening, even for those that don’t have to sell.

Stock Market

Take the stock market for instance. Most people who have retirement accounts don’t need to sell. They’re investing for the long haul. Just the same, people don’t like investing in stocks that aren’t performing to their needs. In these cases, people typically sell and adjust their portfolio with investments they believe better suits their needs. They don’t need to sell, but they choose to sell and invest in something else.

Homeowners should not sell just because their home value is going down. Holding onto a property that no longer serves your needs does not always make sense either. Some people hold onto a property they no longer want until its value goes back up to a desired level. However, the property they would replace the underperforming property with might also go up, wiping out any advantage of holding a property that no longer suits their needs.

Emotional Decision

Real estate more than stocks becomes an emotional investment. People live in houses and build memories, so selling isn’t as easy as unloading a stock because of the emotional ties. It’s easier to make a business decision with stocks at times than it is with real estate.

Real estate has advantages though, because unlike a stock, you can live in a home or rent it out. If the price drops, you can choose to stay in the home, especially if you cannot afford to sell. Some people wouldn’t qualify for a new mortgage, so it’s wise to stay where they are until their financial situation changes.

Consult with a Professional

The Ellis Team at Keller Williams Realty have consulted with thousands of homeowners over the years. We can help you evaluate your options from an objective level and point out the pros and cons of making a move. We have resources that may help you and may think of things you haven’t considered. Our job is not to sell you but work with you to find a solution that makes sense for your family, even if that means staying for a while.

Give Sande Ellis or Brett Ellis a call 239-310-6500 and let’s talk. If you do decide to sell, we can help you decide on a pricing strategy. Our marketing plan is fantastic, and our family working with your family is a winning team! Or track your home value online at www.SWFLhomevalues.com. We’ll keep tracking the seller price reductions average and monitor when this number changes significantly, hopefully for the better.

Good luck, and Happy Selling!

Ellis Team Weekend Open Houses

Open House Sunday 12-3 PM

4768 Crested Eagle Ln Fort Myers, FL

Open House Sunday 12-3 PM

2304 NE 13th Ave Cape Coral, FL

Local housing inventory supply declined slightly in September, down from 5.39 months in August. Let’s breakdown which price ranges went down and why.

Housing Inventory Supply Declined

Everything $600,000 and up declined in inventory supply this past month. Sales went down in each of the three price ranges, but listing inventory declined even more. This tells us that more sellers simply took their homes off the market rather than sell in today’s market.

The $500k-$600k market increased in supply ever so slightly. Closed sales remained the same while listing inventory went up by four homes.

Best Performing Price Range

The $400-$500k market declined in supply. In this case, listings went down, and sales went up. This is the only price range on the chart that can make that claim.

The $300-$400k range saw listings jump by 105. The good news is sales jumped 66 to help offset some of the increase.

Worst Performing Price Range

The less than $300k range saw an increase in listings and a decrease in closed sales.

Based on these statistics, we can say the best performing price range this past month was in the $400-$500k range. The worst performing range for the month was the less than $300k range. If you are a seller in either of these two ranges, you might be feeling gratitude or pain.

In general, lower priced homes are more sensitive to external market conditions. In July, 36.6% of homes sold locally were paid for in cash. This means that 73.4% were financed.

The Fed

The Fed has purposely raised interest rates to cool the economy. They explicitly said they had to cool the job market to tame inflation. Statistics have shown they were able to cool the job market. The hope is the Fed will begin lowering rates starting this month and into the Fall. We could be dealing with a slumbering labor market into next year as lower rates will take time to work their way through the economy.

Shadow Inventory

Remember all those sellers that took their property off the market? How many of those will come back on the market in 2025? We just do not know. We suspect if the real estate market were to ever heat up in the next few years the shadow inventory would present itself and tame price appreciation.

Interest ratesWe are not expected to drop fast. If the Fed does drop rates fast, it means our economy is in worse shape than predicted, and this would not help the real estate market.

Thinking of Selling?

If you’re thinking of selling, Always Call the Ellis Team at Keller Williams Realty 239-310-6500. Sande and Brett are here to answer your questions. Or visit www.SWFLhomevalues.com to get an instant value on your home and track it over time. The sooner you start, the more data you will have.

Thanks for Voting

Thanks for voting the Ellis Team the Top Team in Fort Myers, and the Best Agent in Cape Coral! We appreciate the confidence News Press readers place in us, and we are grateful.

Good luck, and Happy Selling!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

914 SW 12th Terrace Cape Coral, FL

Waterfront pool Home Cape Coral — Heated Pool waterfront Home in Cape Coral

Open House Sunday 12-3 PM

2552 Keystone Lake Dr Cape Coral, FL

Open House Sunday 12-3 PM

26236 Colony Rd Bonita Spring FL

Imperial Harbor Furnished Home — Furnished Home in Imperial Harbor

Local home prices slipped 5.3% from last year, down to $395,000. Median home prices were $417,000 a year ago and were $400,000 last month. What has caused home prices to slip in SW Florida?

Inventory

Inventory is up 77% over last year. Official numbers show 8,054 single family homes on the market this year versus 4,545 last year. And this is after many sellers took their home off the market and rented them.

New Pending Sales

While this number dropped .5% from last year, it’s actually not as bad as it could have been. In fact, pending inventory right now is up. We’ll see if this holds, or if some of these deals fall out due to insurance or inspection concerns.

Interest Rates

Interest rates today are about 1% lower than they were a year ago. Additionally, many sellers have been paying for interest rate buydowns for the buyer which has helped home sales. With falling interest rates there is rising optimism buyers may be able to afford to get back into the home buying business and may become more motivated. Of course, this assumes they keep their jobs.

Months Supply of Inventory

Inventory supply has swelled to 7 months officially. We calculated it at 5.39 months, but our MLS does not have every single listing. Believe it or not, some sellers will list their home with Realtors from outside of the area and they use their own MLS. Sellers should ask which MLS their home will appear on and make that part of their contract, but that’s another story.

Interesting Trends

The Ellis Team is noticing some interesting trends developing in the resale market. Keep in mind, when official numbers are released, they are always a month behind, and it pays to know what is happening in the moment. We’ll be watching these trends the next few weeks to see what impact they will have on the market.

Thinking of Selling?

If you’re thinking of selling your home, now would be the time to call Sande or Brett Ellis. We will share our inside market statistics, so you know before the public does what the market is doing and how best to react. Imagine having a month jump on the stock market? Would that affect your decision on the stocks you bought and sold, and the timing? You can have that same advantage In the real estate market.

Marketing

Having a jump on the market is beneficial, but so is hiring the best agent with the best marketing. Pricing your home correctly is important, but so is marketing. Any Realtor can list a home, but the great ones get your home sold for Top Dollar. Always call Brett or Sande Ellis 239-310-6500 to see how much we can get for your home. Just because local home prices slipped doen’t mean they’ll stay where they are. The market is always on the move.

Instant Online Price

Of course, you can also try our instant online pricing tool at www.SWFLhomevalues.com Our system will track your home’s value over time, even if you’re not ready to sell today. People love the tracking tools. While we have one of the best online tools out there, we still recommend validating the value with Sande Ellis or Brett Ellis if you’re considering selling. You wouldn’t want to leave money on the table based upon a computer valuation. Nor would you want to overprice it as well because the computers were wrong.

Experience

Due to recent industry changes, experience matters more than ever. Be sure to ask about commissions and how they are being handled, and which form the brokerage you choose is using. Unfortunately, many buyer agents are not fluent in the changes and need an experienced listing agent to help guide them. You can’t hire an inexperienced listing agent and expect to get over the finish line in this market.

Good luck, and Happy Selling! We’ll keep an eye on the market for you. Just call us when you’re ready!

Ellis Team Weekend Open Houses

Open House Saturday 9am – 3pm

914 SW 12th Terrace Cape Coral FL

Open House Sunday 12-3 PM

10813 Dennington Rd Fort Myers FL

Feautured Home of the Week

If you’ve been following our column, you’ll know that we’ve been writing about housing inventory levels falling since April. After more research we learned about rentals affecting housing resale inventory supply.

According to a leading rental agent, rent prices have been down 35% in the last three months. He mentioned there are 176 single family homes in Cape Coral alone that came on the rental market. Because he has conversations with his clients, I asked him what is driving the rush to rent their homes.

Rentals Affecting Housing Resale Inventory Supply

The rental agent said many have tried to sell their home and could not, or just do not like the resale prices today, so they’ve decided to rent instead. This caused a rush of rental homes to enter the market, and some are still asking for 3 month ago rental prices.

Like the resale market, rentals are price sensitive. Whether you are renting or selling, you must price your home according to market conditions. For those that choose the correct rental price, those homes are rented within four to six weeks. For those owners that overprice their rental, it’s taking three to four months to rent their home. Presumably it takes longer for the owner to realize they are overpriced, and they eventually reduce rent until it rents. Our conversation didn’t get that far, but why else would it rent for more down the road?

Rent Vs Sell

There are three reasons why a homeowner would rent versus selling. First, they emotionally want what their home used to be worth and decide to wait until the market recovers to that point. Secondly, they may owe more on the home and need to wait until market recovers to pay off the loan. Third, they may decide it’s a good investment and would like to keep it. Perhaps they have a low interest rate and can afford to keep it until rates fall again.

We may never see rates get below 3% again. If they do approach sub 4% it probably means the economy isn’t doing well and the Fed is trying to pump the economy. If this scenario occurs, home prices wouldn’t be doing well.

Economic Projections

We just sat through an economic projection of three possible scenarios. The first was no recession, the second scenario was a normal recession, and the last scenario was a banking recession. Let’s pray for no recession or or a mild one because the outlook for home prices and sales time isn’t pretty if we hit a normal recession or banking recession.

Buyers and sellers should prepare for rates to come down, but it will take awhile, and real estate will lag while they do. Recovery will be slow. If we enter a normal recession, home prices could be stalled or fall for 3+ years. And if we enter a banking recession, unemployment would rise dramatically and the economy could get ugly. We last saw this scenario in the Great Recession and savings and loan crisis.

The difference is today our country is in so much more debt than we were in 2006. Latest odds have the US entering a recession at about 70%. The definition of a recession is negative growth for two straight quarters, so we won’t know we’re in one until 6 months in.

Bottom Line

Real estate is moving, if it’s priced correctly. Those rentals will come back on the resale market one day, adding to inventory. For now, it might be a good time to sell while inventory is down. Of course, when all those rentals come back on the market, interest rates might be lower and maybe there will be more buyer demand to offset the increased supply.

We’ll keep watching the market for you. Always call Sande or Brett Ellis 239-310-6500 with your real estate questions or visit www.swflhomevalues.com to get your home’s price.

Good luck, and Happy Home Selling!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

6216 Emerald Pines Cir Fort Myers, FL

Open House Sunday 12-3 PM

10813 Dennington Rd Fort Myers, FL

Open House Sunday 12-3 PM

914 SW 12th Terrace Cape Coral, FL

Reduced home inventory supply is indeed good news for home sellers in Lee County. The overall monthly supply of homes on the market decreased from 5.67 months in June down to 5.39 months currently.

Price Ranges

Every single price range decreased except for the under $300,000 market. Even though closed sales are falling in some of the price ranges, they are being made up for in others. Perhaps the largest reason for the drop in housing supply is because sellers simply aren’t selling in the quantity they were back in June.

We have 302 less listings on the market right now. There was an increase in sold closings of 31 homes. This tells us that the drop in inventory levels has more to do with sellers taking their home off the market or less sellers deciding to bring their home to market. The decrease in home listings was not due to a drastic increase in closings.

Interest Rates

Interest rates are falling. It’s hard to get a feel for what they are officially because everyone quotes from a different base. For instance, Freddie Mac is reporting rates nationwide at 6.73%. This was last week’s rate to be fair. Other sources are quoting below 6% online, but there could be some points or closing fees involved to equalize the rate. Suffice it to say, rates have fallen, and they could fall more as the economy deteriorates.

Double Edged Sword

Sellers have been hoping for falling rates so more people can afford to pay a higher sales price on their home. The double-edged sword is that many are losing their jobs and businesses are cutting back, so there may be less buyers in the buying pool. The buyers that do have jobs may afford more when rates fall, but there could be less buyers overall.

Some buyers and sellers are holding off until the election before deciding to make a move. Americans feel less certain about their futures right now and they are looking for a reason to be optimistic. We just came off big inflation numbers where American purchasing power diminished, and now jobs are on the line. Some people are not optimistic about moving forward until they bring back a sense of control in their life.

We’re not sure the election is going to give them that, but we understand it as we hear these every four years.

Industry Changes

Industry practice changes are in effect. We predict several months of chaos as buyers, sellers, and agents figure out how to work in the new environment. Some brokerages have already figured it out and are operating as though not much has changed. Other brokerages and agents are in a state of confusion and don’t know how to move forward.

We’ve been telling readers for a while; it pays to work with an agent who understands what is happening and how to succeed in this environment. Our clients’ successes are literally in the hands of agents who are experienced and well trained to work in this environment. You must know the new practices inside and out to be able to explain it to clients. Buyers and sellers need this information to make good decisions, and unfortunately some are not getting good information or making the best decisions.

The good news is, even if a seller doesn’t understand the practice changes and makes a decision they later wish to change, they can. And you don’t have to switch agents or brokerages to make the change. Sit down with your agent and ask questions. If you’re unhappy with the results, make a change to the way they operate.

Interview

Buyers and sellers should interview agents now. Who you hire matters. The Ellis Team at Keller Williams is available to meet with you and discuss your options. You may or may not hire us, but at least you’ll understand better the options available to you and how they affect you. Take advantage of reduced home inventory supply levels while it lasts.

Good luck, and Happy House Hunting!

Ellis Team Weekend Open Houses

Open House Saturday 2-4 PM

5407 Parker Dr Fort Myers FL

Open House Sunday 12-3 PM

2752 Geary St Matlacha, FL

Open House Sunday 12-3 PM

914 SW 12th Ter cape Coral, FL

Cape Coral Waterfront Pool Home — Waterfront Pool Home

Open House Sunday 12-3 PM

26236 Colony Rd Bonita Springs, FL

Affordable home with Kinetico water system — Affordable Furnished Home

This is the week real estate industry changes went into effect. Today we’ll cover those changes once more as this will be a whole new process for Realtors, buyers, and sellers.

Real Estate Industry Changes

Locally, effective July 31, 2024, the MLS compensation field has been removed from MLS. Sellers may still offer compensation to buyers’ agents to sell their property, but the amount can no longer be listed in the MLS.

Buyer agents will need to call the listing agent directly to find out how much the seller is offering or view it on the listing brokers custom website. Offers may be placed on signs, newsletters, brochures, etc., just not in the MLS, or associated connected tools of the MLS.

Buyers

Buyers must sign an agreement with an agent to tour homes. This agreement shall cover such things as compensation the buyer will pay the buyer’s agent for services, among other things. This does not mean that the buyer agent cannot accept payment from the seller, because they can. Any fee recouped from the seller will offset how much the buyer will have to pay the buyer agent. In many cases, the seller will be paying the entire buyer’s agent fee.

Buyers will have choices. If a seller is not willing to pay all or part of the buyer’s agent fee on the buyer’s behalf, the buyer can ask the seller to pay it through the offer. Or the buyer might decide to skip that property and move on to more buyer friendly properties. In the end, the market will dictate which properties hold the most value to the buyer. How the offer is structured will be a point of negotiation.

Sellers

Sellers will make decisions at the time of listing how much they will compensate buyer’s agents. This offer will then be communicated to showing agents. Buyers will then make decisions about which properties they wish to see based upon the totality of their criteria. Buyer agent compensation may be a big thing to some buyers and almost negligible to others. If buyer agent compensation is not offered, buyers may offer less for the property, unless the property is deemed such a good value, and they don’t want to lose it to another buyer. Again, the market will decide the total value of the property based upon market conditions.

Work Around

Buyers could go directly to the listing agent. In this case, the buyer will not need to sign a buyer broker agreement to tour homes. A buyer may need to sign a representation agreement, depending on the brokerage, but this will not require a compensation agreement.

Listing agents will in many cases be paid their listing fee plus a fee to work with unrepresented buyers because the agent will spend more time showing the property, educating buyers, attending inspections, and working both sides of the contract. The primary benefit of this arrangement is the buyer won’t need to sign a compensation agreement.

Open Houses

Buyers will not need to sign a buyer agreement to visit an open house. However, if a buyer meets an agent at an open house and asks them to show the other properties, then they will need an agreement.

If you thought buyers and sellers were confused before, these next several months amp up the confusion. The end goal is to have a more educated buyer and seller upfront.

Interview Before You Hire

The agent you list with now matters more than ever. Trust and reputation between agents will be more critical as communication through MLS is taken away. The buyer’s agents will show homes that offer the best relationships and efficient communication. If a buyer’s agent calls a listing agent with compensation questions and the listing agent doesn’t return calls, this will be a problem and that property may be skipped. This will harm buyers and sellers.

Agents know which agents do the business and who they can work with. Experience matters now more than ever. The next 6 months could be chaos, so working with an agent who has the tools and experience to handle these real estate industry changes will be critical.

Always Call the Ellis Team at Keller Williams Realty 239-489-4042. We’ll guide you through the process, no matter which side you are on.

Fun Real Estate Video

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

10813 Dennington Rd Fort Myers, FL 33913

Open House Sunday 12-3 PM

2752 Geary St Matlacha, FL 33993

Lee County Home Prices fell again in June, bringing the median home price to $400,000. Last year it was $430,000, so that was a 7% drop in the last year. In May median home prices were $415,000, so prices are continuing to drop.

Closed home sales fell 9% from last year, and 18.62% from last month. New pending sales are down 10.5% from last year, so things are not looking up for the coming months. The deteriorating housing market is not surprising as the effects of rising interest rates have had their desired effects to slow things down. The deterioration is usually the worst just before interest rates start declining.

The Fed can lower rates once they see data that the economy has cooled off. The risk is they overshoot the slowdown and things continue to deteriorate after they begin easing rates. Because economic activity is a lagging indicator to rates, it is very difficult to time interest rate hikes and easing perfectly for a smooth landing.

Rate Cut?

Wall Street odds place a September rate cut at 96%. The Economist’s odds are in the 82% range. We believe rates will come down 25 basis points in September or November depending on the data that comes out in the coming months.

Mortgage activity picks up each time interest rates fall. We’ve already seen rates fall about a quarter percent in the last 3 weeks. If economic data becomes bleaker, the mortgage market may react before the Feds cut rates.

Uncertainty

America has about as much uncertainty as we have seen in a long time. Inflation rose at a record pace followed by record interest rate hikes. Too much money has been released into the markets due to government overspending and it has taken high rates a while to influence the labor market and economy. Housing has certainly been affected. Couple the drastic economic fluctuations with a polarized electorate, and assassination attempt of a former president, and the current ruling party forcing their candidate to withdraw from the race, and you’ve got a recipe for uncertainty.

With election season upon us, who knows when the silliness will abate. It’s silly season alright, but there are signs the real estate market could do better in the 4^th quarter.

Currently oil prices are declining. Once we have a winner and know the makeup of the White House and Congress, our country can begin moving forward. If we have lower interest rates later this year and things quiet down in the middle east, Ukraine, and Taiwan, we could be in for improving real estate conditions.

I know these are big ifs. However, we must admit we are living in uncertain times, and much is unknown. I watched a documentary the other day that showed how America was similar to 1968. I went back and looked at home prices from 1968-1970 and prices declined about $30,000 adjusted for inflation. I did not study any other economic conditions from 1968 so don’t take this analogy in American history as a predictor of what the real estate market will do.

I think we can all agree it will be nice to settle into certainty. Our home is our castle, and some certainty with our castle will feel more settling.

Like to Sell

If you have a home to sell, always call the Ellis Team at Keller Williams Realty 239-489-4042. We cannot settle the country, but we can settle your situation. With over 37 years of experience, Brett and Sande are uniquely qualified to sell your home in this changing market. We look forward to speaking with you, no matter your situation. We’ve been through changing markets before and hiring a professional that understands marketing must change to meet the moment. Sande and Brett Ellis know how to market to the moment.

If you’re thinking of selling, or tried to sell and it didn’t work out, give us a call. We can help.

Good luck, and Happy Home Selling!

Big Changes Coming August 1

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

5407 Parker Dr Fort Myers, FL

Open House Sunday 12-3 PM

26236 Colony Rd Bonita Springs, FL

Fun Real Estate Marketing Videos

The practice of real estate is going to change in a big way as there are major real estate changes coming August 1.

In the old days, and by old, I mean last week, buyers would work with an agent, and they didn’t have to worry about how the agent was going to be paid. The seller paid for it. Going forward, the seller still may pay it, but what happens upfront is going to change.

Major Real Estate Changes

Going forward the buyer has two choices. The first is to sit down with an agent and hire them to work with for an agreed-upon amount of money. Once there is agreement, the buyer and agent can negotiate to get the seller to pay for it. In the absence of that, buyer will pay the amount owed, or the balance of the amount owed if seller is paying for part of it. Or the buyer can say don’t show me properties unless the seller is going to pay for it.

The other option is to not hire an agent and contact listing brokers directly. Listing brokers are not required to sign a buyer to a buyer agreement on one of their own listed properties. Some buyers will absolutely choose this method as they won’t want to be tied down with anyone.

This second option could get old fast if the buyer is not successful scoring a property. It takes a lot of time to research and call listing agents, attend showings, or attend open houses. Many of these buyers will not have all the required mortgage and insurance approvals needed to move forward on a moment’s notice when they do find a home they like.

The buyers will not necessarily save any money with this second option either because the listing agent will be taking time and doing both ends of the deal or hiring agents to help out. What it will do is relieve buyers from signing a buyer agreement with an agent they don’t know well or trust.

Research Before Signing

Sellers have been signing agreements for years. Before a seller signs an agreement with an agent to sell their home, typically they might research who has a track record of selling homes and interview them to make sure they were a good fit.

Buyers on the other hand worked with the first agent they met and liked. This was probably always a mistake because the first likeable agent might not be the best agent to negotiate your home purchase with. Our advice would be to interview buyer agents the same way a seller would interview listing agents. Ask them key questions about their experience and track record, and what you can expect when you work with them regarding availability, communication, and negotiations. Does your agent have access to key resources like inspectors, lenders, accountants, engineers, CPA’s, lawyers, etc.?

Information is Key

Now more than ever information will be key. Certain fields will be removed from the MLS. Established procedures will be eliminated or redefined. Choosing an agent or a strategy will be paramount in home buying and home selling success. I feel like the new mandatory rules remove transparency and make it harder for consumers to make informed decisions. Removing the fields from MLS will slow things down, but the professionals will rise to help you. Inexperienced agents and less than 100% committed agents will have a tough time, and so will their clients. major real estate changes like this require you to hire the best when buying and selling.

If you’re looking for an experienced team that can help you in the coming days, Always Call the Ellis Team at Keller Williams Realty 239-489-4042 or visit www.LeeCountyOnline.com We’re here to help!

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